VIENNA — OPEC Secretary General Haitham Al-Ghais said late Monday that technological innovation will play a critical role in reducing greenhouse gas emissions.
Al-Ghais made the remark in a speech during the 30th Annual Middle East Petroleum and Gas conference (MPGC), held on May 22-23, in Dubai, United Arab Emirates (UAE).
“This is why our member countries invest heavily in hydrogen projects, carbon capture utilization and storage facilities, and the circular carbon economy,” he said.
The President of the UAE Sheikh Mohammad Bin Zayed Al Nahyan announced at the beginning of the year that 2023 would be the “Year of Sustainability”.
“This reflects this country’s longstanding commitment to sustainable practices and international cooperation to address the challenges of our times,” he added.
The culmination of the “Year of Sustainability” will be Dubai hosting the COP28, which represents a moment of tremendous pride for OPEC, the OPEC chief noted.
Meanwhile, Al-Ghais emphasized, “Despite the urgent need for investment, we have heard disheartening calls from some quarters to divest from hydrocarbons”.
He went on to say that the OPEC has been clear in highlighting the very real and dangerous consequences of divestment or underinvestment in the oil industry.
“The reality is that oil and gas will continue to be an integral part of the energy mix for the foreseeable future,” he pointed out.
Al-Ghais also said that the global oil sector will need a cumulative investment of $12.1 trillion till 2045 which is around $500 billion a year.
At the MPGC 2023, Al-Ghais also said oil is expected to retain the largest share in the energy mix throughout the outlook period, accounting for almost 30 percent in the year 2045.
“Global economy in 2045 is expected to double the size it is today. The global population is set to increase by 1.6 billion by 2045.
“As a result of these global economic and demographic changes, energy demand is forecast to increase by a significant 23 percent from now till 2045.
“Such an increase in demand necessitates adequate investment,” the OPEC chief said.
Al-Ghais also warned about the decline in investment in the energy sector which amounts to nearly 4-5 percent.
“OPEC believes that challenges before us can be accurately diagnosed. It is about reducing greenhouse gases emission and not a misguided narrative of replacing one energy for another,” he said.
He added that member countries invest heavily in hydrocarbon projects, carbon capture utilization storage facilities and circular carbon economy. — Agencies